Dec 19, 2005
North Sea Acquisition
International Frontier Resources Corporation ("IFR" - TSX-V) has entered into a letter agreement to farmin on blocks 41/5, 41/10a, 41/7, 42/1 and 42/2a ("Quad 41/42") located in the UKCS North Sea. Subject to execution of a formal farmin agreement the Company will pay 10% of the cost to drill and test a 6000 foot exploration well to earn a 7.5% interest in Quad 41/42. In addition the Company has an option to increase its interest in the blocks by paying 25% of the cost to drill and test the first well drilled on the Lytham St. Anne prospect to earn an additional 18.75% interest in Quads 41/42.
The Quad 41/42 acreage covers an area of 970-square kilometers (236,000 acres) located in the southern North Sea. Interpretation of a 235 square kilometer 3-D seismic survey has identified a number of prospective structures; the first structure to be drilled encompasses an area of 7,000 acres with three prospective reservoir targets. The operator plans to drill the Lytham # 1 well in 2006 when a drilling rig becomes available.
The Company also reported today approval of its Q-1, 2006 through Q-1, 2007 budget at $13.5 million (firm) and $15.2 million (firm & contingent). The Company will fund the following capital expenditures from working capital on hand;
Central Mackenzie Valley - Northwest Territories
President 403 215-2781
VP Exploration 403 215-2783
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release. This news release is not intended for distribution to US news wire services or for dissemination in the United States and does not constitute an offer of the securities described herein.
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